Digital Financial Reporting

I am not sure why I did not think of creating these exemplars sooner, but I am getting increasingly happy with how helpful they are in resolving some of the issues I am seeing. You can check these exemplars out by going to the link above and clicking on"Show Specific Examples". What you will see is a number of links.  These links takes you two the three specific pages provided below.  Right now I am focusing on the balance sheet, income statement, and cash flow statement. Data referred to comes from an analysis I performedon 1474 SEC XBRL filings.

• Balance sheet: Two balance sheets are modeled, one with a noncontrolling interest and the other without a noncontrolling interest.  The point of this is to show which concept should be used for equity under each scenario. Those creating filings are using one of the two equity accounts shown.  The point is, everyone should be using the SAME concept to model total equity. These exemplars show the answer.  The rational for the choice is this: why would having or not having a noncontrolling interest impact the concept for for "Equity"?  The concept for "Stockholders' Equity Attributable to Parent" is a subtotal, used if you have a noncontrolling interest.  If you do have a noncontrolling interest no issue exists because you have to use both concepts.  The problem exists only if you do not have a noncontrolling interest.
• Cash flow statement: The question on the cash flow statement is when should the concept which specifically identifies ", ....Continuing Operations" be used such as "Net Cash Provided by (Used in) Operating Activities, Continuing Operations" as opposed to "Net Cash Provided by (Used in) Operating Activities". Similar cases exist for operating, financing, and investing activities. If you have discontinued operations how things should be modeled is clear.  But if you don't, then the question is model QQQ appropriate?  Most filers model their cash flow statements like QQQ, but it does not specifically state that cash flows are from continuing operations.
• Income statement: If you are a filer and you have income from equity method investments, extraordinary items, discontinued operations, a noncontrolling interest, preferred dividends, and you pay income taxes; then how to model the income statement is clear.  But, who has all that stuff? If you turn this around and if you only have income taxes (we all have to pay the tax man) figuring out what concepts to use can be challenging. Exemplar BBB shows how this should be modeled if you have what amounts to "Income (Loss) from Continuing Operations Before Taxes", "Income Tax Expense (Benefit)" and "Net Income (Loss)". Exemplar CCC shows how to model things if you add a net income from a noncontrolling interest.  Exemplar DDD shows a "flat" organization of CCC.  Exemplar EEE shows adding discontinued operations.  Exemplar FFF shows adding preferred dividends.

NOTE!!! I am not yet ready to hold these out as undisputed examples, but hopefully I will get to that point.  I am discussing these issues with others at this point.  Those discussions are getting closer and closer to a consensus, but we are not there yet.

Do you have an opintion? Post a comment or email me (CharlesHoffman@olywa.net).